Exxon Mobil sees technology's windfall

Oil giant projects boatloads of benefits for nation

Published 6:28 pm, Wednesday, March 13, 2013

William Colton of Exxon Mobil had an attentive audience Wednesday at the Baker Institute at Rice University as he spoke on the company's energy outlook.

William Colton of Exxon Mobil had an attentive audience Wednesday at the Baker Institute at Rice University as he spoke on the company's energy outlook.

Photo: Johnny Hanson, Staff

Exxon Mobil sees technology's windfall

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New technologies have been the key to unlocking unprecedented growth in domestic oil and gas production that will lower energy costs, create jobs and provide opportunities to expand U.S. trade, Exxon Mobil Corp. predicted Wednesday.

The Irving-based oil company unveiled its 30-year energy economic outlook report in a Wednesday morning session at Rice University's Baker Institute for Public Policy. It said the global energy landscape is changing amid new technologies for tapping into oil and gas reservoirs, electric meters that provide power companies and customers better information, and hybrid vehicles.

"New technologies have allowed us to provide energy in ways that were unimaginable even 10 years ago," William Colton, vice president of corporate strategic planning for Exxon Mobil, said during the presentation. "The energy system has always evolved and it will continue to evolve as new technologies come into the picture."

Oil and gas production has soared in the U.S. as advanced drilling technology has opened up opportunities to explore previously inaccessible plays.

Environmentalists say the technology, notably hydraulic fracturing, can harm local environments and contribute to global warming by promoting fossil fuels.

But Colton said that the economic benefits are the equivalent of a $600 billion stimulant package for the U.S. economy.

He cautioned that excessive government regulation could inhibit advances in technology.

"The whole boom resulted not from the government sector but private industry working with landowners," Colton said, though he said the company supports "effective, science-based regulation."

Exxon Mobil is the largest producer of natural gas in North America, following its purchase of natural gas producer XTO in 2009.

Colton made it clear that natural gas continues to be central to Exxon Mobil's plans, even as low natural gas prices - around $3.60 per million British thermal units - have led some companies to scale back gas production.

"There is a huge opening for natural gas as the fuel of choice for the future," Colton said. "Natural gas is affordable today, it doesn't require any new technology to use it and it has lower CO2 emissions. It is the practical choice because the plants are easy to build and affordable to operate."

Exxon Mobil supports expanded exports of liquefied natural gas - a contentious topic because some U.S. petrochemical manufacturers fear exports would raise the price of the domestic gas that they use as fuel and raw material.

Colton characterized exports as an opportunity for economic development tied to liquefaction plants and terminals required to turn the gas into liquid and transport it on oceangoing tankers.

"One plant would involve $10 billion of investments, not including upstream development and resources, with thousands of new job opportunities," Colton said. "The expansion of exports from the U.S. through trade is the ultimate economic win-win."

While coal and renewable energy will continue to be part of the mix for generating electricity, nuclear energy also will also play a growing role, Exxon Mobil projects. It estimated that nuclear energy will grow 25 percent worldwide by 2040, as countries balance its low generation costs and low carbon emissions against concerns about safety and waste disposal..

Exxon Mobil expects North American energy consumption to decline 5 percent by 2040, as energy efficiency improvements mitigate the demands of population growth.